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HomeMy WebLinkAboutReso 2016-2511 • • RESOLUTION NO. 2016- 2 517 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING A DONATION OF TRANSFER OF DEVELOPMENT RIGHTS ("TDRS") IN THE AMOUNT OF SEVENTY FIVE THOUSAND (75,000) SQUARE FEET OF FLOOR AREA AND THIRTY FIVE (35) DWELLING UNITS TO CORNER HOUSE LLC FOR THE PROPERTY LOCATED AT 18801 COLLINS AVENUE; DIRECTING THE ZONING ADMINISTRATOR OR DESIGNEE TO DONATE THE AFOREMENTIONED TDRS FROM THE TDR BANK ACCOUNT OWNED BY THE CITY; AUTHORIZING THE ADJUSTMENT AND MODIFICATION OF THE TDR BANK ACCOUNT; CONSENTING TO THE ASSIGNMENT OF TDRs; PROVIDING THE CITY MANAGER AND THE CITY ATTORNEY WITH THE AUTHORITY TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, by Zoning Resolution No. 15-Z-156, adopted November 19, 2015, the City Commission of the City of Sunny Isles Beach ( the "City Commission)") approved the zoning application submitted by La Playa Beach Associated, LLC, a Delaware limited liability company ("La Playa") for the transfer of TDRs in the amount of 283,485 square feet of floor area and 119 dwelling units for the property located at 18801 Collins Avenue, Sunny Isles Beach, Florida 33160 (the "Property"); and WHEREAS, the City Commission hereby agrees to donate to Corner House, LLC, TDRs in the amount of Seventy Five Thousand (75,000) square feet of floor area and Thirty Five (35) dwelling units for assignment to La Playa for the Property,; and WHEREAS, the City's TDR Bank will be adjusted to reflect the donation of 75,000 square feet of floor area and 35 units to Corner House, LLC, for assignment to La Playa for the Property ; and WHEREAS, the Property receiving the TDRs is described on Exhibit "A" attached hereto; and WHEREAS, Corner House, LLC shall have the right to assign the TDRs to La Playa for the Property however if La Playa does not utilize the TDRs, La Playa shall have the right to assign the TDRs if the TDRs are not designated for the Property; and WHEREAS, the City Commission agrees to authorize the donation of the TDRs contemplated herein as an incentive for development pursuant to its Charter and Home Rule Authority. Corner house LLC TDR Bank Page 1 of 3 NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Sectionl. Incorporation of Recitals. The foregoing recitals are true and correct and are incorporated herein by reference as if they are fully set forth herein. Section 2. Authorizing the Donation of TDRs from the City to Corner House, LLC. As an incentive for development, the City Commission hereby approves a donation of transfer of development rights in the amount of the Seventy Five Thousand (75,000) and Thirty Five (35) dwelling units to Corner House, LLC for assignment to La Playa for the Property, however, if La Playa does not utilize the TDRs, La Playa shall have the right to assign the TDRs if the TDRs are not designated for the Property. Section 3. Directive to Zoning Administrator. The Zoning Administrator or their designee is hereby directed to donate the transfer of development rights in the amount of Seventy Five Thousand (75,000) square feet of floor area and Thirty Five (35) dwelling units to Corner House, LLC for the property located at 18801 Collins Avenue. Section 4. Consenting to the Assignment. The City Commission hereby consents to the assignment of the TDRs to La Playa Beach Associated, LLC provided that Corner House, LLC submits to the City Manager or designee a letter confirming the assignment of the TDRs. Section 5. Authority of the City Manager and City Attorney. The City Manager and City Attorney are hereby authorized to do all things necessary to effectuate this Resolution. Section 6. Effective Date. This Resolution shall become effective u..l adoption. PASSED AND ADOPTED this 21st day of January 201 , " .• Georg- . Scholl, Mayor `ATTEST: • • - - :! . A tl,i,,,,,_D' ,,"Jane,A. Hi s, MMC, City Clerk APPROV D AS TO FORM AND E��1 . EFFICIENCY: ff4 sOttinot, City Attorney Corner house LLC TDR Bank Paae 2 of 3 Moved by: � WO • Seconded by: ONVi„t,,V1ALOAA L E..V i 40 Vote: S-0 Mayor Scholl t/(Yes) (No) Vice Mayor Gatto ✓(Yes) (No) Commissioner Aelion (Yes) (No) Commissioner Levin (Yes) (No) Commissioner Goldman (Yes) (No) Corner house LLC TDR Bank Page 3 of 3 EXHIBIT "A" Legal Description: All of Tract "I", less the South 216.66 feet as measured at right angles to the South line of said Tract "I", of AMENDED PLAT NORTH BISCAYNE BEACH, according to the plat thereof, as recorded in Plat Book 44, at Page 42, of the Public Records of Miami-Dade County, Florida. TOGETHER WITH That parcel of land lying East of and bounded on the West by the East line of said Tract "I", and bounded on the North by the Easterly extension of the North line of said Tract "I", and bounded on the East by the Erosion Control Line of the Atlantic Ocean, as recorded in Plat Book 134 at Page 47, of said Public Records of Miami-Dade County,Florida,and bounded on the South by the Easterly extension of the North line of the South 216.66 feet, as measured at right angles to the South line of said Tract "I" of AMENDED PLAT NORTH BISCAYNE BEACH AND The South 200 feet of Tract "H", as measured at right angles to the South line of said Tract "H", of AMENDED PLAT NORTH BISCAYNE BEACH, according to the plat thereof', as recorded in Plat Book 44, at Page 42, of the Public Records of Miami-Dade County, Florida. TOGETHER WITH That parcel of land lying East of and bounded on the West by the East line of said Tract"H",and bounded on the North by the Easterly extension of the North line of said South 200 feet of Tract "H", as measured at right angles to the South line of said Tract "H", and bounded on the East by the Erosion Control Line of the Atlantic Ocean, as recorded in Plat Book 134 at Page 47, of said Public Records of Miami-Dade County, Florida, and bounded on the South by the Easterly extension of the South line of said Tract "H" of AMENDED PLAT NORTH BISCAYNE BEACH. ADDRESS: 18801 Collins Avenue, Sunny Isles Beach, FL 33160 FOLIO: 31-2202-003-0120 PROMISSORY NOTE 40 January_2016 FOR VALUE RECEIVED, the undersigned, Corner House, LLC, a Florida limited liability company ("Maker"), promises to pay to the order of City of Sunny Isle Beach ("Payee" or the "City"), a Florida municipal corporation located at 18070 Collins Avenue, Sunny Isles, Beach, FL 33160 or at such other office as Payee may from time to time designate, the principal sum of Four Hundred Thirty Seven Thousand Five Hundred Dollars ($437,500.00) (the "Indebtedness") for park improvements or similar purposes. The Principal payment shall be due and payable within thirty (30) months from recording of the title for the property located at 18590 Collins Avenue ("Property") ("Maturity Date"). All payments made on this Note shall be applied by Payee to the reduction of the Indebtness. The Indebtedness shall be due and payable on the Maturity Date. If this Note is not paid promptly on the Maturity Date in accordance with its terms and is placed in the hands of an attorney for collection, Maker agrees to pay all reasonable attorney's fees and the costs and expenses of collection of this Note incurred by Payee. Maker covenants and agrees that time is of the essence for payments due under this Note. All agreements between Maker and Payee, whether now existing or subsequently arising and whether written or oral, are expressly limited so that, in no contingency whatsoever, whether by reason of acceleration of the maturity of this Note or otherwise, shall the amount paid or agreed to be paid to Payee pursuant to the terms of this Note or otherwise or for the payment or performance of any covenant or obligation contained in this Note or in any other document evidencing, securing or pertaining to the indebtedness evidenced by this Note exceed the maximum amount permissible under applicable law. If, from any circumstance whatsoever, fulfillment of any provision of this Note or other document, at the time performance of such provision shall be due, shall involve exceeding the maximum amount permissible by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit validly allowed by law. If Payee shall ever receive, as interest or otherwise, an amount which would exceed the highest lawful rate of interest, such amount which would be excessive interest shall be applied to the reduction of the principal amount owing under this Note or on account of any other principal indebtedness of Maker to Payee and not to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of this Note and such other indebtedness, such excess shall be refunded to Maker. The terms and provisions of this paragraph shall control and supersede every other provision of all agreements between Maker and Payee. This Note shall be prepayable, in whole or in part, at any time and from time to time without premium or penalty at the sole option of the Maker, with the amount of the prepayment being credited in respect of principal. Promissory Note—Corner House,LLC 291 ® No invalid provisions of this Note shall affect or impair any other provision. Maker and each endorser, surety and guarantor acknowledge receipt of a completed copy of this Note. MAKER AND PAYEE, EACH AFTER CONSULTATION WITH FLORIDA COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY \VAIVE ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS NOTE, OR THE TRANSACTIONS OR OBLIGATIONS UNDER WHICH THIS NOTE WAS DELIVERED, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRII IEN) OR ACTIONS OF ANY PARTY RELATING TO THIS NOTE. MAKER AND PAYEE EACH ACKNOWLEDGE THAT THE PROVISIONS OF THIS PARAGRAPH ARE A MATERIAL INDUCEMENT TO PAYEE'S ACCEPTANCE OF THIS NOTE AND MAKER AGREEING TO TERMS OF THIS NOTE. No amendment, modification, waiver or discharge of this Note, or any provision of this Note, shall be valid or effective unless in writing and signed by Payee and Maker. This Note shall be construed in accordance with the internal laws of the State of Florida, exclusive of its choice of law principles, and any suit, action or proceeding arising out of or relating to this Note must be commenced and maintained in a court of competent subject matter jurisdiction in Miami-Dade County, Florida and Maker consents to such jurisdiction and venue and waives all objections (including, without limitation,forum non conveniens) thereto. Maker agrees to pay the City's attorney's fees and costs if the City has to file any legal action to enforce the Note. MAKER: Corner House, LLC By: Manuel Grosskopf Manager Promissory Note—Corner House, LLC 292 1/15/2016 Item Coversheet N S�=u.= City of Sunny Isles Beach t r.=' • �, 18070 Collins Avenue - ._ . Sunny Isles Beach,Florida 33160 'a a�P (305)947-0606 City Hall :1P ': O` y�e `-‘,,o svN■.•° (305)949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Mayor George"Bud"Scholl DATE: 1/21/2016 Donation of Transfer of Development Rights("TDRs")in RE: the amount of 75,000 square feet of floor area and 35 dwelling units to Corner House LLC for the Property Located at 18801 Collins Avenue RECOMMENDATION: It is recommended that the City Commission approve the proposed Resolution for the transfer of Development Rights ("TDRs") in the amount of 75,000 square feet of floor area and 35 dwelling units to Corner House LLC for the Property Located at 18801 Collins Avenue. REASONS: After extensive negotiations between the Property Owner, Corner House, LLC, ("Corner House") and the City of Sunny Isles Beach ("City"), the parties have reached an agreement to include the following key business terms: 1. City will donate 75,000[1]square feet of floor area and 35 dwelling units to Corner House for the property located at 18801 Collins Avenue("Veradero"). 2. The Property located at 18590 Collins Avenue will be donated to the City for public purposes. The City will have full control and use of the Property upon acceptance of the dedication of the Property. 3. Corner House will make a cash payment to the City for improvements to the site in the amount of $437,500.00 within 30 months from the date of acceptance of the dedication. 4. The City will lease the property located at 15800 Collins Avenue to Corner House or a related entity for$5,000.00 per month for up to 18 months at the end of the current lease to an entity owned by Dezer Development Corp. ("Dezer"). However, this lease to Corner House will only be exercised in the event active marketing and sales efforts for the Ritz-Carlton Residences project are still ongoing at the end of the current lease period to Dezer Properties. Additionally, I am informing you that the principals of Corner House are involved in the Ritz-Carlton Residences and are negotiating an agreement with Dezer to lease the 15800 Collins Avenue sales office / for the remainder of the term allotted to Dezer by the City to market the Ritz-Carlton project. The length of this remaining term is approximately two and a half years. This would eliminate the need for the principals of Corner House to build a sales center on the oceanfront project site. Therefore, provided the Ritz-Carlton httpJ/sunnyisles.novusagenda.com/agendaweb/CoverSheet.aspx?Item ID=1837 1/2 1/15/2016 Item Coversheet condominiums are still being actively marketed at the end of the current Dezer lease, the City would agree to lease Corner House the 15800 Collins Avenue sales office for up to an additional 18 months for $5,000.00 per month.A proposed Letter of Intent will be presented to the City Commission for approval of the proposed lease agreement. The above agreement is very favorable to the City for the following reasons: 1. The Property located at 18590 Collins Avenue is strategically important to the City given the City's prior acquisition of the Turnberry site on Atlantic Boulevard. These two sites connect through the overlap of the back alley. 2. The above agreement puts to rest the notion of a multistory building at the entrance to a single family neighborhood. 3. The 71,500 TDRs that the City is donating for the property located at 18801 Collins Avenue ("Veradero") is marginally higher than the actual yield of the property's TDRs of 62,685. However, since the City is able to receive the property located at 18590 Collins Avenue immediately, the benefits to the City are high. This includes immediate benefits to the surrounding communities, strategic assemblage of this block of properties, and the avoidance of litigation. I respectfully request your approval of this Resolution. [1] It should be noted that through the course of negotiations, the Parties actually ended up at 71,500 TDRs. However, Corner House wanted to show a net transaction of 75,000 TDRs. In order to realize this objective, the City is being rebated the difference in cash value (3,500 TDRs x$125=$437,500). ATTACHMENTS: Description Resolution Letter of Intent Item Number: 10.H. • • httpi/sunnyisles.novusagenda.com/agendaweb/CoverSheet.aspx?Item 1 D=1837 2/2